Mr. Andy Duncan reports

BOARDWALKTECH REPORTS SECOND QUARTER FISCAL 2026 FINANCIAL RESULTS

Boardwalktech Software Corp. has released its financial results for the three-month period ended Sept. 30, 2025 (Q2 fiscal year 2026). All figures are reported in U.S. dollars, unless otherwise indicated. Boardwalktech's financial statements are prepared in accordance with international financial reporting standards (IFRS).

Financial highlights:

• Revenue for Q2 FY 2026 was $1-million, a 4-per-cent increase from $900,000 reported for the three months ending June 30, 2025 (Q1 FY 2026) and a 25-per-cent decrease versus $1.3-million for the three months ended Sept. 30, 2024 (Q2 FY 2025), mainly due to two previously announced customer non-renewals.
• Annual recurring revenue (ARR), a non-IFRS metric, at Sept. 30, 2025, was $3.8-million. The company defines ARR, a non-IFRS metric, as the annual recurring revenue expected based on trailing quarterly revenue from licence subscriptions and certain recurring services.
• Gross margin for Q2 FY 2026 was 86.7 per cent, compared with 83.5 per cent in Q1 FY 2026 and 88.7 per cent in Q2 FY 2025.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for Q2 FY 2026 was a loss of $400,000, which was a 44-per-cent improvement versus the $600,000 loss in Q1 FY 2026 and flat versus Q2 FY 2025.
• Non-IFRS net loss for Q2 FY 2026 totalled $400,000, or loss of one cent per basic and diluted share, versus a $700,000 non-IFRS loss, or loss of one cent per basic and diluted share, in Q1 FY 2026 and versus a $500,000 non-IFRS loss, or loss of one cent per basic and diluted share, in Q2 FY 2025.
• Net loss for Q2 FY 2026 was $500,000, or loss of one cent per basic and diluted share, versus a $900,000 loss, or loss of one cent per basic and diluted share, in Q1 FY 2026 and versus a $700,000 loss, or loss of one cent per basic and diluted share, in Q2 FY 2025. This represented a 44-per-cent sequential improvement over Q1 FY 2026 due to an increase in revenues and a decrease in costs.
• Cash as of Sept. 30, 2025, was $40,000, plus $600,000 of trade and other receivables, with cash usage from operations decreasing by $1.6 million year over year in the most recent quarter, before the company's most recent cost reduction actions, undertaken in August, 2025.
• Outstanding debt as of Sept. 30, 2025, was $2.6-million drawn against a line of credit from Celtic Bank. Due to requirements under IFRS, this debt was reclassified under current liabilities even though the final debt maturity remains in March, 2027.

"Although fiscal 2026 has been challenging thus far from a revenue growth perspective, we're starting to see customers lever their Velocity and Digital Ledger successes with expanding deployments and the addition of more users," said Andrew T. Duncan, chief executive officer of Boardwalktech. "We anticipate improved revenue performance in the second half of the year, contingent on the successful completion of several late-stage licence agreements currently in progress. Several upgrade projects with existing customers have been completed or are under way, which will add professional services revenues and increase ARR. We also see meaningful opportunity for further ARR growth as customers utilize Boardwalktech's AI-enhanced [artificial intelligence] capabilities and as we advance our product development efforts. When combined with our recent cost-reduction initiatives, this anticipated growth positions the company to soon reach EBITDA break-even."

About Boardwalktech Software Corp.

Boardwalktech has developed a patented digital ledger technology platform currently used by Fortune 500 companies running mission-critical applications worldwide. Boardwalktech's digital ledger technology and its unique method of managing vast amounts of structured and unstructured data are the only platform on the market today where multiple parties can effectively work on the same data simultaneously while preserving the fidelity and provenance of the data. Boardwalktech can deliver collaborative, purpose-built enterprise information management applications on any device or user interface with full integration with enterprise systems of record in a fraction of the time it takes other non-digital-ledger-technology-based platforms. Boardwalktech is headquartered in Cupertino, Calif., with offices in India and operations in North America.

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